Hoang Anh Gia Lai (HAGL) began construction of the Mang Yang 2 industrial cluster on 12/8 in Hra commune, Gia Lai province. This project marks the first time Doan Nguyen Duc, Chairman of HAGL, has invested in industrial cluster infrastructure.
The project, spanning 75 hectares, represents a total investment of 400 billion dong. Situated along National Highway 19 in Hra commune, it will connect to the future Quy Nhon expressway and Phu Vinh port. This strategic location will facilitate the transport of agricultural products from the Central Highlands, Laos, and Cambodia to export markets.
The industrial cluster's investment strategy focuses on deep processing of agricultural and forest products. It will also produce ancillary products for export packaging, along with fertilizers and microbial fertilizers derived from agricultural waste.
Previously, HAGL invested heavily in real estate, developing apartment complexes, hotels, and resorts in TP HCM, Quy Nhon, and Gia Lai. However, a subsequent restructuring saw the group divest from non-agricultural sectors to concentrate solely on crops and livestock.
However, this venture into industrial cluster development does not signal a return to the real estate sector for HAGL. Bau Duc told VnExpress that there are no plans for further industrial cluster infrastructure investments beyond Mang Yang 2. The project's purpose is not to operate as a commercial infrastructure venture or to lease to external businesses, but to support HAGL's own production activities.
This industrial cluster will enhance HAGL's agricultural operations by incorporating crucial processing and preservation stages.
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Bau Duc (in blue shirt, from right) alongside Gia Lai provincial leaders at the groundbreaking ceremony on the morning of 12/8 in Gia Lai. *Photo: Thi Ha* |
The project is slated for completion and operation by late 2027, preceding the launch of HAGL's silk reeling and packaging factory at the site in early 2028.
Nguyen Huu Que, Vice Chairman of the Gia Lai Provincial People's Committee, affirmed that HAGL is progressing with the project on schedule, as planned and submitted to local authorities. He urged relevant departments to collaborate in resolving any issues, ensuring the project's timely completion.
According to Que, the industrial cluster will provide crucial outlets for Gia Lai's agricultural raw materials, facilitating their entry into international markets. A dedicated frozen processing zone and storage warehouse will enable businesses to strategically time their exports, avoiding the pressure to sell immediately during harvest seasons.
"Deep processing and storage facilities will empower businesses to select optimal export times, mitigating the common issue of oversupply driving down prices during bumper harvests," Que stated.
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A model of Hoang Anh Gia Lai's industrial cluster planned for Hra commune, Gia Lai province. *Photo: HAG* |
The project is expected to create over 4,500 jobs once fully operational. HAGL also plans to implement wastewater treatment, convert agricultural waste into fertilizers and microbial fertilizers, and utilize renewable energy.
Gia Lai province currently hosts 70 established industrial clusters, with 47 already operational. These active clusters maintain an average occupancy rate of 81%.
Thi Ha
